Lighting Fixtures Market

Market Overview

The global lighting fixtures market was valued at USD 132.07 billion in 2023. It is estimated to reach USD 192.91 billion by 2032, growing at a CAGR of 4.3% during the forecast period (2024–2032). In recent years, the world has witnessed a burgeoning surge in the population globally, which has led to a rapid expansion of construction, thereby driving the global lighting fixtures market. Moreover, the key players in the market are integrating lighting fixtures with wireless technologies, which is estimated to present a compelling opportunity for the retinal biologics market. 

A light fixture, also known as a luminaire, is an electrical apparatus designed for illumination for electric lighting. Each light fixture consists of a fixture body and one or more lights. The bulbs could be in sockets for simple replacement or hard-wired in the case of some LED fixtures. Moreover, fixtures may contain a lighting control switch that is linked to the lamp body or the power line. Certain permanent lighting fixtures, like dining room chandeliers, rely on a wall switch rather than having a switch on the fixture itself.

Fixtures need to be connected to an electrical source of power, usually AC mains power, though some run-on batteries for camping or emergency illumination. Direct wiring is used for permanent lighting fixtures. A plug and wire into a wall socket are on portable lamps. Other elements of light fixtures include reflectors for light direction, apertures (with or without lenses), exterior shells or housings for lamp alignment and protection, electrical ballasts or power supplies, and shades to dilute the light or direct it toward a workspace (e.g., a desk lamp).

Market Dynamics

Global Lighting Fixtures Market Drivers

Robust Growth in the Construction Industry

Increasing construction activities worldwide, especially in the commercial sector, have fueled the lighting fixtures market. There is a high demand for lighting fixtures in emerging economies across Asia-Pacific, Africa, and Latin America. This can be ascribed to surging investments in the construction industry and increased focus on infrastructural development in the residential, commercial, utility, and public sectors owing to the rapid growth of the population worldwide.

As per the United Nations, in mid-November 2022, the world's human population reached 8.0 billion, which is an increase from an estimated 2.5 billion people in 1950. This means that there has been an addition of 1 billion individuals since 2010 and 2 billion people since 1998. It is anticipated that the global population will grow by over 2 billion individuals over the following three decades, reaching 9.7 billion by 2050 and potentially peaking at around 10.4 billion in the mid-2080s. Thus, the growing population will positively impact the construction industry, subsequently boosting the demand for lighting fixtures.

Global Lighting Fixtures Market Restraint

Complex Purchasing Decisions and High Initial Investment 

Initial installations of LED fixtures need high investments as they are more expensive than traditional fluorescent and incandescent lighting fixtures. LED lighting fixtures are more costly due to their complicated assembly, thermal design, and raw material inputs. Due to such initial costs, an average consumer might prefer conventional lighting fixtures.

Purchasing decisions on lighting fixtures are much more complex than other electrical goods since the customer base consists of diverse users, such as designers, architects, electrical engineers, lighting contractors, and common households. With their advantages, integrated LED lights also present the limitation of the LED's lifecycle. Such factors hinder market growth.

Global Lighting Fixtures Market Opportunities

Increasing Demand for Wireless Technologies

Key players in the market are significantly focused on integrating their products with wireless technologies. Wireless solutions can be operated through smartphones, offering energy and efficiency savings. Consequently, major companies are attempting to capitalize on this opportunity by incorporating technology and offering innovative solutions to acquire a competitive advantage in the lighting fixtures market. Moreover, there has been an increase in the demand for smart homes, especially in developed countries like the U.S., Germany, the U.K., and France. These smart home projects require smart lights with Wi-Fi-connected solutions and wireless technology, presenting numerous lucrative opportunities for players in the lighting fixtures market. Thus, the increase in demand for advanced light fixtures is opening new avenues for manufacturers of lighting fixtures.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global lighting fixtures market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global lighting fixtures market shareholder and is anticipated to exhibit a CAGR of 4.4% during the forecast period. The region is expected to experience the fastest growth in the global lighting fixtures market. Rapid urbanization, increasing construction activities, and supportive government policies promoting energy efficiency are the primary drivers of this growth. With significant contributions from major economies like China and India, the region presents lucrative opportunities for market expansion and investment.

China's lighting fixtures market is a significant player, driven by its robust manufacturing sector and proactive government initiatives. The Chinese government has made several policies to promote energy-efficient lighting solutions, aiming to phase out traditional incandescent bulbs in favor of LED technology. For example, the "Made in China 2025" initiative emphasizes advancements in smart manufacturing, including intelligent lighting systems. Urban development projects such as smart cities are also accelerating the adoption of IoT-enabled lighting fixtures, further boosting market growth. The construction of new infrastructure and the renovation of existing buildings to meet modern energy standards are expected to continue propelling the demand for advanced lighting fixtures in China.

Indian lighting fixtures market is primarily driven by urbanization, increasing disposable incomes, and government support for sustainable development. The Indian government's initiatives like the "Ujala Scheme" aim to replace traditional bulbs with LED lights, significantly reducing energy consumption and costs for consumers. Additionally, the Smart Cities Mission, which focuses on urban infrastructure development and modernization, is driving the demand for smart and energy-efficient lighting solutions.

Moreover, the launch of new lighting fixtures by the key players is estimated to create opportunities for market growth. For instance, in November 2023, Halonix Technologies, a rapidly expanding electrical firm in India, introduced its newest offering, 'Wall De-light,' which establishes new standards in terms of attractive design. The bulb is six times slimmer than a conventional LED bulb and does not need an additional fixture.

Consequently, all these factors are estimated to drive the Asia-Pacific lighting fixtures market growth.

North America is a significant player in the global lighting fixtures market, driven by robust technological advancements, a high rate of adoption of smart lighting systems, and stringent energy efficiency regulations. The market in this region benefits from substantial investments in infrastructure modernization and strong governmental support for energy-saving technologies. Both the U.S. and Canada are key contributors to the market, with the U.S. being the dominant force.

The United States lighting fixtures market leads North America, primarily due to its advanced infrastructure and early adoption of innovative technologies. Programs and initiatives by the Department of Energy, such as the Better Buildings Initiative, aim to improve energy efficiency in commercial and residential buildings, significantly boosting the demand for LED lighting fixtures. Moreover, the trend toward smart cities and IoT integration has led to the widespread implementation of smart street lighting and connected lighting systems in urban areas. This adoption is further supported by substantial investments in R&D, making the U.S. a hub for innovation in lighting technology.

The Canadian lighting fixtures market is driven by increasing awareness of energy conservation and government incentives. The Canadian government's regulations on energy efficiency and sustainability have encouraged the transition from traditional incandescent and fluorescent lighting to LED fixtures. Programs like the National Energy Code for Buildings (NECB) set stringent energy performance standards, promoting the adoption of energy-efficient lighting solutions. Additionally, Canada's focus on green building certifications, such as LEED, has further accelerated the demand for advanced lighting fixtures in both residential and commercial sectors.

Thus, the factors above are anticipated to propel the North American lighting fixtures market growth.

Segmental Analysis

The global lighting fixtures market is segmented by source, product, distribution channel, and application.

Based on the source, the global market is segmented into incandescent, fluorescent, and LED and OLED. 

The fluorescent segment owns the highest market share and is estimated to exhibit a CAGR of 3.6% during the forecast period. Fluorescent lamps are commonly found with integral ballasts and screw bases; these lamps are popular and often used in residential fixtures. They are also used for task lighting, such as garages and under-cabinet fixtures, as well as for lighting large areas in commercial buildings. As per the U.S. Department of Energy, fluorescent lamps use 25%-35% less energy to produce the same light as incandescent lamps. They also last about ten times longer than incandescent lamps (7,000-24,000 hours). Fluorescent lamps utilize gas to produce light, thus resulting in less power consumption than incandescent bulbs, which use a metallic filament to produce light. Therefore, energy efficiency, longer lifespan, and low cost have contributed to the enormous share of the fluorescent lamp segment.

Based on product, the global market is bifurcated into ceiling, pendant and chandeliers, wall mounted, portable, and other lighting fixtures. 

The ceiling lighting fixtures segment dominates the global market and is projected to exhibit a CAGR of 3.7% over the forecast period. Various ceiling lighting fixtures in different colors, shapes, and patterns are available for room decoration based on a customer's budget. Ceiling lighting fixtures save space, as the fixture is fixed inside the ceiling. In addition, ceiling lighting fixtures diffuse light over a large area, which is highly beneficial in lighting. These fixtures are available at an affordable price range, driving their adoption in residential and commercial settings. Lighting must be reliable, bright, uniform, long-lasting, and energy-efficient in commercial settings. Thus, many commercial places, such as office buildings, have drop ceilings, which are secondary ceilings installed underneath the main structural ceiling.

Based on distribution channels, the global lighting fixtures market is divided into offline and online channels. 

The offline channel segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 4.1% throughout the forecast period. Offline distribution channels like distributors, dealers, and retailers are used to sell various kinds of lighting fixtures globally. Most consumers prefer purchasing these products from offline electric stores to get assistance with product installation and after-sales support. Brick-and-mortar stores are the most preferred distribution channel in the market, as this channel enables consumers to interact with product specialists and get detailed instructions for proper product installation.

Moreover, many consumers prefer offline stores for making purchases as they can physically examine the product. Corporates, manufacturing industries, and government organizations prefer to directly tie-up with smart lighting manufacturers. This is anticipated to further propel this segment in the upcoming years.

Based on application, the global lighting fixtures market is divided into residential and commercial. 

The commercial segment is the most significant contributor to the market and is expected to exhibit a CAGR of 4.1% throughout the forecast period. Lighting fixtures are vital to interior design as they improve the space's aesthetic appeal and create the right mood and ambiance. Lighting fixtures that illuminate a room can create a safe and comfortable environment and add a touch of style to the interior décor. Such fixtures play a key role in creating the perfect ambiance in commercial spaces like restaurants, pubs, cinema halls, hotels, malls, retail shops, offices, libraries, and museums. Using the right lighting fixtures to suit varied tastes and personalities has become a key strategy to augment customer experience.

The commercial sector increasingly adopts lighting fixtures, particularly LED light modules, which consume 80% less energy than conventional lights. Moreover, increasing smart city development projects and government support for energy-efficient products will help increase the demand for commercial lighting fixtures.

Recent Developments

• April 2024- Govee unveiled its newest additions to the smart interior lighting lineup, the Floor Lamp 2 and Floor Lamp Pro. These cutting-edge lamps are created to enhance modern living areas with adaptable lighting options, in line with the brand's dedication to "Make Life Smarter."
• February 2024- Fluence, a prominent international supplier of energy-efficient LED lighting solutions for commercial cannabis and food production, introduced its latest LED top light solutions for produce and decorative cultivators: RAPTR 2 and VYPR 4.

Analyst’s Perspective

As per our research analyst, lighting fixtures are indispensable elements in the commercial sector, serving as more than just sources of illumination. They shape the ambiance, functionality, and energy efficiency of commercial spaces while offering opportunities for innovation and differentiation. Moreover, advancements in LED technology, IoT connectivity, and lighting controls will drive the adoption of more efficient, adaptive, and personalized lighting solutions. Businesses that embrace these trends and leverage lighting as a strategic asset will not only improve their competitive advantage but also contribute to a more eco-friendly and engaging built environment.